Gov’t re­mains com­mit­ted to pen­sion scheme –

Jamaica Gleaner - - INTERNATIONAL NEWS -

Fi­nance and the Pub­lic Ser­vice Min­is­ter Aud­ley Shaw says the Gov­ern­ment re­mains com­mit­ted to im­ple­ment­ing the pro­posed con­trib­u­tory pub­lic-sec­tor pen­sion scheme by April 2017.

Pen­sion re­form is a struc­tural bench­mark un­der the four-year In­ter­na­tional Mone­tary Fund Ex­tended Fund Fa­cil­ity.

The bill to for­malise pro­pos­als for the re­form ar­range­ments was retabled by Min­is­ter Shaw in the House of Rep­re­sen­ta­tives in Au­gust.

It pro­poses, among other things, that gov­ern­ment work­ers con­trib­ute five per cent of their salary to­wards their pen­sion; that ben­e­fits be com­puted us­ing an av­er­age of the fi­nal five years of the ben­e­fi­ciary’s salary, in­stead of the fi­nal pay as now ob­tains.

Ad­di­tion­ally, re­tirees would be given the op­tion of re­ceiv­ing one quar­ter of their en­ti­tle­ments with re­duced or full pen­sion ben­e­fits.

Ad­dress­ing Prime As­set Man­age­ment Limited’s pen­sion seminar at The Ja­maica Pe­ga­sus ho­tel in New Kingston, Shaw said the re­form is nec­es­sary as the ad­min­is­tra­tion “can no longer af­ford a non-con­trib­u­tory scheme”. He noted that the an­nual pen­sion bill is $26 billion, and that the fig­ure is grow­ing.

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